the science & art of enclosing or

protecting products for distribution,

storage, sale, and use.

What is Packaging ?

Need for PACKAGING

REVENUES EXPENSES

PROFIT (LOSS)

=

PRICING IT RIGHT

What is the total expense for the company ? {60 BB}Therefore : Revenue – 60 = Profit

Assuming 2 different sizes (Large /Small)

Number of large : 10 and sell it for 3 BBNumber of small : 10 and sell it for 2 BBHence at : 10x3=30 + 10x2=20 : Total = 50 BB (LOSS !!)

Pricing Worksheet (C9)

What is the total expense for the company ? {60 BB}Therefore : Revenue – 60 = ProfitAssuming 2 different sizes (Large /Small)Number of large : 10 and sell it for 4 BBNumber of small : 10 and sell it for 3 BBHence at : 10x4=40 + 10x3=30 : Total = 70 BB (PROFIT !!)

Pricing Worksheet (C9) contd…

• Cost (manufacturing + packing + marketing + etc.)• Quantity/Size• Quality • Competitor Information• Perceived Value

Critical factors of Pricing

• Visit the General Store• Buy the packaging material• Record transaction on Company ledger (C3)

Note : company interested in limiting expenses should innovate and try to use substitutes

Let’s buy Packaging Supplies

Let’s do Worksheet (pg87)

1. 2,600 + 1,150 = 3,750

1. 15 x 175 = 2,6253,750 – 2625 = 1,1251,125 / 125 = 9

3. [(16 x 175) + (10x 125)] – (2,600 + 150) = 1,300

Solution to Worksheet (pg87)

ACTIVITIES THAT HELP TOWARDS PROMOTING A COMPANY, PRODUCT

AND/OR SERVICE

ITS ABOUT ‘CREATING A NEED’

WHAT’S MARKETING?

Components of Marketing

LOGO – An attractive graphic representation uniquely designed around the name for easy recognition

Slogan – A distinct phrase to associate and identify with your Company

Advertising – creating awarenessCommunication – clarity Campaign – a series of actions intended to achieve a

specific goalFinally its about Creating a Brand

Components of Marketing

Components of Marketing

1. Disney2. International Olympic Committee3. Mercedes-Benz4. Nike5. McDonald’s6. Thumps Up7. KINGFISHER Airlines 8. Cadbury Dairy Milk 9. Big Bazaar 10. Domino’s Pizza

Solutions to Memo 10

YOU SEE A GORGEOUS GIRL AT A PARTY. YOU GO UP TO HER AND SAY

“I AM VERY RICH. MARRY ME”

Example – Marketing

ATTRACTING ATTENTION TOWARDS A PRODUCT OR SERVICE

ITS ABOUT ‘CREATING AWARENESS’

What’s Advertising ?

• Word of Mouth is a Great Cost Effective Way of Advertising

• Distribute Flyers/Pamphlets to Prospects• Advertising on TV/Print/Mags/Internet/Banners etc• Visual and/or Audio gets best Mileage though

Expensive• Mailers / Emails

Different methods of Advertising

You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you says this

“He's very rich. Marry him”

Example - Advertising

• Marketing is expensive • Do you have enough money ?• If NO then Options :

– Bank Loan @10% p.a.– Venture Capitalist

Note : record this financial transaction on your company ledger (C3)

Raising Additional Funds

• Visit the General Store• Buy the supplies• Record transaction on Company ledger (C3)

Let’s buy Supplies for the Campaign

• You need to create – Company Slogan– Company Logo– Print Advertisement– TV Advertisement (Commercial 30-60 Sec)

Note : you will need present all the above to the shoppers before they begin to shop

Creating a Marketing Campaign

• Target Market – Know Area/Location/Market which has potential demand

• Target Customer – Know your target Audience

– E.g. Male/Female/Age/Social Standing• Know your Competitor Product/Price• Strong Distribution –– Know final point of Sale

– E.g. General Stores/Chemists/Boutiques etc….

Effective Marketing

• Company Stock– Calculate total shares of stock on hand

• Cash In– Calculate = VC + Bank + others + etc..

• Cash Out– Calculate = PKG + MKTG + SAL (1BB per employee)

+ Rent (1BB) + Interest (1BB for every 10BB)

• Cash On Hand– Calculate = Cash In - Cash Out

Prepare Finance Worksheet C(S25)